It is proposed to combine the 8% Ontario sales tax and the 5% GST into a single 13% value-added sales tax that would be federally administered, starting July 1, 2010.
There are some made-in-Ontario components proposed:
- Books, children’s clothing and footwear, diapers, children’s car seats and car booster seats, and feminine hygiene products would be exempt from the 8% provincial portion of the tax.
- Purchasers of newly constructed homes under $400,000 would not be subject to an additional tax burden. Buyers of new homes valued between $400,000 and $500,000 could claim a proportional rebate.
- New rental housing rebate, similar to the enhanced new housing rebate, for new residential rental properties.
- Up to $400 million in one-time sales tax credits would be provided to help small businesses make changes to point-of-sale and accounting systems.
- Provincial portion of the tax rate on transient accommodation, such as hotel rooms, would rise from 5% to 8%. Approximately $40 million a year would be allocated to support destination marketing in Ontario tourism regions once these are established.
For more information, please view here TaxTips